Customers withdrew over $100bn in March qtr
Customers of the First Republic Bank in the US pulled more than $100 billion from their accounts in the first three months of the year amid concerns about the health of the global banking system.
First Republic Bank fiasco
Washington: Customers of the First Republic Bank in the US pulled more than $100 billion from their accounts in the first three months of the year amid concerns about the health of the global banking system.
The US bank says its deposits fell by over 40 per cent since the end of December 2022, the BBC reported. It comes after Swiss banking giant Credit Suisse on Monday revealed the scale of the bank run that triggered its state-backed rescue last month,. A series of bank collapses have raised fears of a crisis in the sector.
“With the closure of several banks in March, we experienced unprecedented deposit outflows,” First Republic's chief financial officer, Neal Holland, said.
“We are working to restructure our balance sheet and reduce our expenses and short-term borrowings,” he added.
First Republic also said it planned to cut costs by shedding 20 per cent to 25 per cent of its workforce in the coming months.
